Overview

• The government bought 433.3 million Intel shares at $20.47 for a total of $8.9 billion, using $5.7 billion in unpaid CHIPS Act grants and $3.2 billion from the Secure Enclave program.
• The position is described as passive with no board seat or governance rights, and it includes a five‑year warrant to acquire up to an additional 5% if Intel cedes majority control of its foundry unit.
• President Donald Trump said he will pursue similar agreements and asserted the U.S. “paid zero,” while National Economic Council Director Kevin Hassett compared the effort to a down payment on a sovereign wealth fund.
• In a securities filing, Intel warned the arrangement could limit future grant eligibility, complicate international sales, and increase regulatory exposure.
• Legal analysts questioned the statutory basis for converting grants into equity and cautioned about precedent risks, as Intel’s shares posted a modest gain following the announcement.